“Moody’s says BTL property purchases will contract the most, given the dual impact of uncertainty of future rental income growth and house price growth. This is combined with the increased cost due to the stamp duty changes for second homes, which came into effect this April. These factors in aggregate, will reduce the demand for BTL properties and therefore mortgage lending in this sector, lowering BTL RMBS issuance.

“Building societies accounted for 37% of rated UK mortgage-backed bonds in H1 2016. Post-Brexit, Moody’s expects building societies to be more reliant on growth in deposit gathering and reduction in lending to help bridge their funding gap. In the UK market, most future issuance from building societies will be concentrated in the prime mortgages segment, rather than BTL mortgages.”